Casual Dining Group to enter South Africa in franchise deal

06 February 2017 by
Casual Dining Group to enter South Africa in franchise deal

At least 20 restaurants under Casual Dining Group (CDG) brands such as Bella Italia, Café Rouge and Las Iguanas are set to open in South Africa in the next five years, following a franchise deal with Gold Brands Investments.

CDG, which runs around 300 mid-market restaurants in the UK has allied itself with Pretoria-based Gold Brands, which is based in Pretoria and listed on the Johannesburg Stock Exchange's AltX board, operates five restaurant brands of its own, including 1+1 Pizza, Chicken Wild Wings and barbecue restaurant Chesanyama.

Founded by Stelio Nathanael and his wife, Praxia, in 2012, Gold Brands has more than 330 restaurants across South Africa's nine provinces, including the Eastern Cape, Limpopo and Kwazulu-Natal.

Gold Brands Investments will exclusively introduce Bella Italia, Café Rouge, Las Iguanas and Belgo outlets to South Africa, with the first scheduled to open by the end of this year.

CDG has already opened restaurants in each of India and Dubai, with a further restaurant under construction in Saudi Arabia. The group is exploring further franchising opportunities in the United Arab Emirates, the Far East, Europe and North Africa.

Mark Nelson, CDG managing director of concessions and franchising, said: "South Africa hadn't been part of our three-phase franchising strategy, until we were contacted by Stelio and we quickly identified a great opportunity, and both parties moved to agree the deal.

"The social demographic and cultural fit between our restaurants, South African consumers' diet, plus the country's acceptance of casual dining, means it is a very exciting market for us.

"It also complements our franchising plans in other overseas locations, particularly North Africa, and will help us achieve our initial target of 100-plus overseas outlets, as we continue to seek other partners interested in franchise agreements with CDG."

Stelio Nathanael, Gold Brands chief operating officer, added: "We went to CDG because we saw their restaurant businesses as being perfect for the market here, with customers always looking for new dining experiences. CDG's restaurants fit, too, with Gold Brands' existing brand portfolio.

"We'll work closely with CDG to localise the outlets, and will use our experience and local market knowledge to ensure we put the right restaurants in the right locations.

"This is a really exciting opportunity for both parties, and we're aiming to have a first outlet open by the end of 2017."

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